Final answer:
A 1% improvement in price translates to a $1 increase in earnings, which is equivalent to 0.1% of the original earnings.
Step-by-step explanation:
In this scenario, the question is asking about the relationship between a 1% improvement in price and its impact on earnings. To solve this, we can use the concept of percentage change. Suppose we have a product that costs $100. A 1% improvement in price means increasing it by 1%. So, the new price would be $100 + ($100 x 1%) = $100 + $1 = $101.
To calculate the change in earnings, we can multiply the change in price by the original earnings. If the original earnings were $1000, the change in earnings would be $101 - $100 = $1. Therefore, a 1% improvement in price translates to a $1 increase in earnings, which is equivalent to 0.1% of the original earnings. This corresponds to option b, 10%.